Wednesday, 9 December 2015

Bearspread strategy in NIFTY

We closed all our positions.

Booked profit earlier in NIFTY option contracts.

DishTV strategy: Booked profit
TataMotors+SBI+ BN: Booked profit
TCS: Booked loss


Decided not to take any new position immediately.
Global cues are negative. FIIs are selling. Now 7712 will act as a resistance. If NIFTY goes below 7500, no GST/fruitful parliament sessions/rate hike would take NIFTY to 7200 quickly.

Bearspread strategy in NIFTY:
But one should forget this after entry in to the trade.

Buy two lots of 7400 PUTs and sell 2 lots of 7200 PUT.
Total risk would be around 3500/- but profit potential will be more than Rs. 23000/-. Even if there is 10% probability that NIFTY will close below 7360 (Break-even point) it is worth taking this trade.


Disclaimer: This blog does not take any responsibility of your profit/loss



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